Billionaire “Bond King” Jeffrey Gundlach says he’s sticking to one play that has worked so far as the United States continues to add to its record-level debt.
In a new video update, the DoubleLine Capital CEO says America’s fiscal path is unsustainable as the country is expected to run a $1.9 trillion budget deficit this year.
According to Gundlach, the best play for investors remains investing in equities outside the United States, predicting that European and emerging market stocks will continue to outperform the S&P 500.
“I continue to recommend non-US investing and equities, which I’ve been recommending since January of 2025. That has definitely worked, and I think will continue to work as the deficit in the United States, the budget deficit, continues to grow at about a $2 trillion per year annual rate. And I pulled up the debt clock, debtclock.org, and the national debt has now climbed above $39 trillion. So we’ll be at over $40 trillion by the end of 2026. That’s something that you can take to the bank, unlike perhaps the projections on inflation and on GDP.”
Data from the Treasury Department shows that the US national debt has climbed to more than $39.016 trillion.
In a recent video, Gundlach unveiled a diversified allocation framework, consisting of 15% in real assets, 30% fixed income, 40% equities and 15% income-oriented dry powder.
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